SHIMLA, March 24: Petrol and diesel are set to become costlier in Himachal Pradesh after the Assembly cleared a provision allowing the state government to levy a cess of up to ₹5 per litre on fuel.
The decision, pushed through an amendment to the VAT law, is part of the government’s effort to raise additional resources for welfare spending. According to officials, the cess will be used to fund schemes aimed at supporting orphans and widows.
While the law allows a ceiling of ₹5 per litre, the government has indicated that the actual increase may be introduced gradually rather than in one go.
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Opposition Targets Government Over “Burden on Public”
The announcement quickly turned into a political flashpoint. Union Minister Anurag Thakur took up the issue in Parliament, accusing the Congress government of putting additional pressure on people despite earlier promises of relief.
Inside the Assembly, Leader of Opposition Jairam Thakur echoed similar concerns, saying the move would hit middle-income families and small businesses already dealing with rising costs.
The protest escalated during the session, with BJP legislators staging a walkout and calling the cess “anti-people”. Party leaders also warned that fuel prices in the state could inch closer to ₹100 per litre if the full levy is implemented.
Why Fuel Prices Matter More in Hill State Economy
In Himachal Pradesh, changes in fuel prices tend to travel quickly beyond petrol pumps. With most goods transported over long distances and difficult terrain, even a small increase often reflects in everyday expenses.
Transporters say higher diesel costs usually translate into increased freight rates within days. This, in turn, affects prices of vegetables, construction material and other essentials.
Farmers and small businesses are also likely to feel the impact, particularly in remote areas where logistics already account for a significant share of costs. Tourism operators, too, could see a rise in operating expenses ahead of the upcoming travel season.
At present, petrol in the state is priced around ₹94 per litre and diesel near ₹86. Any substantial increase under the new cess could push prices further up, adding to inflationary pressure.
